The earnings of the Bank of Commerce (BankCom) surged 49 percent and hit a record high P1.8 billion last year from P1.2 billion in 2021, the highest since the bank was acquired by the conglomerate San Miguel Corp. (SMC).
Total revenues jumped 30 percent to P8.12 billion from P6.22 billion, driven by the growth in net interest income, service charges, fees, and commissions, foreign exchange and gains on foreclosure and sale of property and equipment and foreclosed assets.
Net Interest Income grew by 24 percent to P6.68 billion from P5.4 billion, mainly boosted by the increase in interest on loans and receivables and investment securities.
Other income also surged 74 percent to P1.43 billion from P826.34 million.
This was primarily due to the 61 percent surge in service charges, fees and commissions to P857.63 million.
The increase was mainly brought about by its new revenue stream (investment banking); foreign exchange gains of P150.32 million which more than tripled; gains on foreclosure, and sale of property and equipment and foreclosed assets amounting to ₽340.45 million as well as strong growth in trade and digital transactions.
The Bank of Commerce’s stellar performance culminates its banner year where it successfully raised P3.37 billion as common stock capital through an initial public offering (IPO) and listing on the Philippine Stock Exchange, raised its maiden issuance of P7.5 billion in bonds and officially conferred a universal banking license by the Bangko Sentral ng Pilipinas (BSP).
Total loans and receivables jumped 41 percent to P105.1 billion in 2022 from P74.37 billion in 2021. This translated to a nine percent growth in total assets to P217.52 billion from P199.71 billion.
The capital base of the banking arm of San Miguel Corp. increased by 20 percent to P28.03 billion from P23.36 billion translating to a Tier 1 and capital adequacy ratio of 17.22 percent and 17.97 percent, respectively.
The Bank of Commerce has a network of 140 branches and aims to deploy more ATMs in addition to the current 259 count.
